More than Half of Kiwis Feeling Financially Stressed

Auckland, New Zealand – November
28, 2013 – While 90 per cent of Kiwis will hit the shops
to purchase gifts this Christmas, the additional outlay will
leave more than half the population (51 per cent) feeling
some financial stress over the holiday period. This is
according to new MasterCard commissioned research on
Christmas shopping habits.

When looking at gender, women
appear to feel under slightly more financial pressure in the
lead up to Christmas (53 vs 46 per cent), whilst parents
don’t seem to be bowing to any additional financial
pressure stemming from ‘pester power’ to buy the latest
must-have toy or piece of technology for their children,
with the results being similar to the national average (49
per cent vs the national average of 50 per cent).

The
survey also revealed that whilst most Kiwis (64 per cent)
are looking to spend much the same as they did in 2012, more
than a quarter (26 per cent) will be tightening their belts
and are aiming to spend less overall on Christmas
expenditure this year. Just nine per cent of respondents
said they are planning to spend more this year than the
last.

According to Peter Chisnall, MasterCard New Zealand
Country Manager, “The lead-up to Christmas can be one of
the most stressful times of year when it comes to managing
your finances. There are parties to attend, presents to buy
and Christmas dinner to put on the table. Most of us will do
our best to spend within our means, but the realities are
that most peoples expenditures rise in the lead-up to
Christmas so it’s important for Kiwis to actively manage
their finances so that they can enjoy the festive season
rather than worrying about money.”

Who’s spending
what on who?

The survey also revealed the winners and
losers this Christmas, shedding some light on Kiwi’s gift
giving habits.

This year, the majority of Kiwis are
planning to purchase gifts for between four and six (36 per
cent) or seven to nine (24 per cent) friends and family.
However women appear to edge out the men when it comes to
the spirit of giving, with almost a third (31 per cent)
planning to purchase gifts for 10 or more people (compared
with just 10% of men).

As to who gets the lions share in
our budgets, children come out as clear winners amongst
parents, with an average being spent of $88 – although in
27 per cent of households, parents were planning to spend
more than $150 on the apples of their eyes this Christmas.

And partners are next in line during the festive season,
with an average of $86 being spent. Parents and in-laws
($48), siblings ($32), other family member ($23) and friends
($22) are also in-line to have gifts under the tree this
year.

Managing Christmas spend

To manage seasonal
spending, Kiwis reported relying on a combination of credit
cards (35 per cent), their November/December pay cheques (33
per cent), putting money aside in a savings account (32 per
cent) or buying throughout the year to spread costs (31 per
cent), to fund their Christmas purchases. Only 8 per cent of
people use a Christmas club scheme to fund their Christmas
purchases.

However, the research also showed that 39 per
cent of women (compared to 21 per cent of men) plan ahead
and try to make purchases through the year in order to
spread costs, while men were slightly more likely to put
their purchases on their credit cards (38 per cent vs 33 per
cent of women).

Chisnall added, “From this year’s
results, it appears that women are employing a few extra
tactics to relieve financial pressure over the Christmas
period, such as spreading purchases throughout the year, and
using alternative funding methods than using credit.
However, even with this planning, women still seem to be
feeling more stressed than their male counterparts, which
may be linked to the fact that women also appear to be doing
the bulk of the shopping at this time of year with almost a
third (31 per cent) intending to purchase more than ten
gifts this Christmas!

“At the end of the day, the
Christmas period should be a time to relax and unwind,
rather than feeling under financial pressure. Although it is
sometimes easier said than done, the best way to manage
financial pressure around Christmas time is to actively plan
for the increase in expenditure and have a clear strategy
around how to manage your budget. Whether this is spreading
purchases throughout the year, reducing the number of people
bought for or decreasing the amount spent overall, the key
thing is to have a budget and strategy that works for you
and to stick to it.”

To help customers manage any
financial pressures over the holiday period, MasterCard has
developed a series of tips for consumers to help them manage
their debt over the Christmas period.

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